1 | City of Chandler Small Business Guide Small Business Resources 2025 Contents Knowing Chandler Establishing Your Location 3 Introduction 22 Location Type 4 Demographics & Rankings 23 Zoning & Use Permit 7 City Services 23 Development Process 8 Business Resources 24 Additional Location Items to Note 9 Resource Contact Information 24 Location Resources 11 Coworking Business Spaces Starting Your Business Doing Business in Chandler 26 Tax & License 13 Checklist 28 Environmental 14 Business Plan 29 Further Resources 14 Structure & Name 16 Business Structures Comparison Chart 17 Resource Contact Information Financing Your Business 18 Funding Options 18 Loans 19 SBA Programs 20 Regional Grants & Credits 21 Financial Resources Labor Laws 30 Overview 31 Labor Resources Appendix 32 Glossary of Terms 34 Index 3 | 3 | Knowing Chandler Introduction Since its founding in 1912, the City of Chandler has been a forward-thinking community built on entrepreneurial spirit, innovation and hometown traditions. A long-held vision of thoughtful, constructive and consistent planning has helped transform Chandler into one of the strongest economic centers in the region, state and nation. Chandler’s proactive leadership, businessfriendly environment, world-class labor force and market reach have made it an attractive base for internationally recognized companies and new start-ups spanning a wide range of industries. Outside of work, our community is passionately committed to developing a sense of place that draws new visitors and enriches the lives of our residents. An enviable, award-winning quality of life is provided through friendly neighborhoods, great schools, and one-of-a-kind shopping, dining, recreation and entertainment experiences. Year after year, large and small companies along with thousands of talented residents make the decision to call Chandler home. We encourage you to read on, experience Chandler for yourself, and discover why you, too, should become part of this vibrant community. Community of Innovation Small Business Resources 2025 Demographics & Rankings Attractive, Diverse, Educated & Growing Community Population Growth (1990-2030) 309,100 2030 Projected Population 275,987 2020 Census 236,123 2010 Census 176,581 2000 Census 90,533 1990 Census Data Source: U.S. Census Bureau, Arizona Office of Economic Opportunity, Maricopa Association of Governments 4| Demographics & Rankings Unemployment Comparison 55| | Chandler & Metro Phoenix Community Comparison 3.0 percent 38 Chandler’s Unemployment Rate Chandler’s Median Age 3.6 percent 38 Metro Phoenix Unemployment Rate Metro Phoenix Median Age Data Source: Arizona Labor Statistics 2025 Note: The unemployment rate is an average calculation utilizing 2025 data National Community Rankings (2022-25) Best Place to Live for Families in Arizona -Fortune 2024 7th Best Place to Find a Job -WalletHub 2025 5th Best City for Women in Tech 8th Best Untapped Cities for Startups -SmartAsset 2022 -Fundera 2023 6th Best City for Families 11th Best Place for First-Time Home Buyers -Opendoor 2023 -WalletHub 2025 $114K Chandler’s Median Income $92K Metro Phoenix Median Income 57K Chandler’s Per Capita Income 47K Metro Phoenix Per Capita Income Data Source: ESRI Business Analyst 2025 Small Business Resources 2025 6 | Demographics & Rankings Working Population by Age Education Levels Educational Attainment (Ages 25+) 13% AGES 15-24 15% AGES 25-34 38 YRS 14% AGES 35-44 MEDIAN CHANDLER RESIDENT AGE 94% HIGH SCHOOL GRADUATE 78% AT LEAST SOME COLLEGE 49% BACHELOR’S OR HIGHER 14% AGES 45-54 12% AGES 55-64 Data Source: ESRI Business Analyst 2025 Data Source: ESRI Business Analyst 2025 Income Levels Race & Ethnicity $150K $114K $94K 0.2% PACIFIC ISLANDER 2.0% AMERICAN INDIAN 6.3% BLACK 8.7% SOME OTHER RACE RACE 13.0% ASIAN ALONE $57K 14.0% TWO OR MORE RACES 55.7% WHITE PER CAPITA AVERAGE MEDIAN MEDIAN HOUSEHOLD HOUSEHOLD DISPOSABLE Data Source: ESRI Business Analyst 2025 Spanish, Hispanic or Latino Twenty-four percent of Chandler residents identify as Spanish, Hispanic or Latino. These people may be of any race. Data Source: ESRI Business Analyst 2025 Small Business Resources 2025 7 | City Services Economic Development Division The City of Chandler Economic Development Division promotes the city as a preferred location for new and expanding businesses. Our primary purpose is to enhance employment opportunities and improve Chandler’s tax base by focusing on industrial, office, retail and tourism development. Our responsive team of professionals offers services tailored to support the business and commercial real estate community. Partnering with the Arizona Commerce Authority (ACA), Arizona Office of Tourism and the Greater Phoenix Economic Council (GPEC), we market Chandler domestically and internationally to attract new business investment and new job creation to our city. In addition to maintaining a strong job base, we work to create a diverse mix of quality retail and tourism experiences. The Economic Development Division partners with the Chandler Chamber of Commerce to establish relationships with Chandler’s existing businesses. We continually assess the needs of existing businesses with an eye toward developing solutions that will increase economic growth within our community. We are here to: • • • Provide data to help you make informed business location decisions Connect you with other appropriate city offices and resources Assist with development and/or occupancy processes Chandler Public Library Chandler’s Public Library System consists of four branches spread throughout the city to ensure the availability of information resources. The libraries are equipped with modern computer systems that provide direct access to business sites via the Internet, as well as subscription database titles. Anyone who has a library card and a pin can access the following business resources: A powerful online reference and research tool providing library cardholders instant, real-time access to accurate, in-depth information on U.S. businesses (59 million) and U.S. residents (310 million). Evaluate new business opportunities, research executives and companies, find news articles, conduct job searches, research papers, locate addresses and phone numbers, conduct market research and much more. Visit www.chandlerlibrary.org, click on “Browse the Library”, under “Online Resources”, click on “By Name”, then under D click on “Data Axle Reference Solutions”. • All four libraries have books and audiobooks about small business start-up, entrepreneurship, finance, marketing, law, sales, personnel and other relevant topics. Free downloadable materials are also available through the Greater Phoenix Digital Library. Visit www. chandlerlibrary.org. • Library staff can help with locating materials and conducting database searches. Call the Reference Desk for assistance or visit www.chandlerlibrary.org, click on “Hours and Contact”, then click on “Ask a Question” to receive an answer to your query via e-mail. Chandler Diversity Office The City’s Diversity Office works closely with the Chandler Human Relations Commission to develop diversity programs and events that support the mission of promoting mutual respect and inclusion in Chandler. Along with members of the community, the Diversity Office works toward the elimination of prejudice and discrimination; and to promote amicable relations among all racial, cultural, religious, age, gender, disabled, socioeconomic and national groups in Chandler. The Diversity Office maintains relationships with organizations that seek to promote the success of minority-owned small businesses, and staff can provide referral assistance to interested parties. Chandler Career Center Chandler’s Career Center bridges the gap between job seekers and local businesses in our “Community of Innovation” to foster a vibrant and prosperous workforce to drive economic growth by promoting Chandler as a top business location and developing a world-class workforce and fostering a corporatefriendly environment through collaboration with businesses, educational institutions, and the community. Business Location Team (BLT) The Business Location Team (BLT) is a free resource that is available to help office, industrial and retail businesses navigate the tenant improvement processes. Knowledgeable city staff will conduct a site tour with you to identify and explain: • • • • Development issues that may be expensive and/or timeintensive Pertinent city code requirements (building and zoning codes) Development process steps through Certificate of Occupancy Review timelines, submittal requirements, fee requirements, permit requirements, and inspection requirements Small Business Resources 2025 8 | Business Resources Arizona @ Work Maricopa County East Valley Career Center College & University Assistance Arizona @ Work helps area businesses succeed in securing qualified talent, training current employees to use new industry technology, and providing lay-off aversion resources and transition strategies. Colleges and universities have many programs that are designed to help build the local economy. They also have access to vast amounts of information through their research and databases. Some of the top-notch colleges and universities include: Arizona Commerce Authority • Arizona State University The ACA provides a variety of resources to assist entrepreneurs, including information and statewide resources for starting, operating and growing a business in Arizona. The ACA online program at www.azcommerce.com/smallbiz provides you with a customized step-by-step checklist of what you need to know, whom you need to contact and where you need to go for business licensing, registration, tax requirements, funding, hiring, certification, procurement opportunities and business resources. • Chandler-Gilbert Community College • Grand Canyon University ABSN - Chandler The Arizona Commerce Authority (ACA) is a resource for information and referrals at every step of the small business development process. The office also provides minority and women business owners with information on relevant business programs and services. To be certified as a Minority-, Woman-owned, Small and Disadvantaged Business Enterprise, a company must meet all qualifying standards and be at least 51 percent owned, operated and controlled by a qualifying person or persons. Organizations providing certification and registration programs for minority-woman-owned, small and disadvantaged businesses are listed at www.azcommerce.com/smallbiz. The Arizona Small Business Advocate is the Executive Director of the Governor’s Council on Small Business (GCSB). The Advocate is responsible for keeping an open line of communication among the Governor, the Director of the ACA, the GCSB and the Arizona small business community. The Advocate and GCSB work with chambers of commerce and other groups to develop recommendations for policies and programs addressing fundamental issues related to small businesses in Arizona. ASU Career & Professional Development Services Provides a vast array of services including resume referrals, job listings, on-campus recruitment, pre-recruiting information, job fairs and information sessions. Arizona State University is one of the largest public universities by enrollment in the United States. As of fall 2023, ASU has more than 145,000 students across five Greater Phoenix campuses, four regional learning centers throughout Arizona and its ASU Online programs. Chandler-Gilbert has three East Valley campuses and is part of the Maricopa County Community College system. They serve nearly 140,000 students annually. Customized training and various services for small businesses are offered at the Pecos Campus. Grand Canyon University (GCU) is a Phoenix-based private university rooted in Christian Values. GCU’s accelerated ABSN site in Chandler builds on students’ non-nursing college education to put respected nursing education well within reach. Designed exclusively for accelerated nursing students, the Chandler facility features state-of-the-art skills and simulation labs, classroom space, computer labs, faculty offices and student lounge. Visit www.gcu.edu/degree-programs/absn-acceleratedbsn/arizona/phoenix for more information. • University of Arizona The University of Arizona has a total enrollment of more than 53,000 students as of fall 2023. UA’s main campus is in Tucson, but the university has an expanding presence in Greater Phoenix, which includes its UA Chandler facility. The UA’s Near You Network Location in Chandler offers undergraduate and graduate programs that align with indemand skills and the area’s industry workforce needs. Visit www.nearyou.arizona.edu/chandler for additional information. Chandler Chamber of Commerce The Chandler Chamber of Commerce is a private, nonprofit business organization that has been servicing the business community since 1912. The Chamber is an important advocate for the business community and a primary source of networking opportunities in Chandler. Small Business Resources 2025 9 | Business Resources Continued Chandler Endeavor Venture Innovation Incubator The city and ASU’s J. Orin Edson Entrepreneurship + Innovation Institute have partnered to launch the Chandler Endeavor Venture Innovation Incubator. Based at the ASU Chandler Innovation Center in Downtown Chandler, this free program offers cohort tracks with customized strategy development, monthly topic-driven workshops, access to prototyping equipment, and dedicated office space for clients. E+I@ACIC Coworking Space The ASU Chandler Innovation Center also houses the E+I@ACIC coworking space, which provides entrepreneurs with access to free workspace in the heart of Downtown Chandler. Visit www.entrepreneurship.asu.edu/spaces/asu-chandlerinnovation-center for additional information. Visit www.entrepreneurship.asu.edu/programs/chandlerendeavor-incubator for additional information. Resource Contact Information City of Chandler Resources Chamber Resources Continues Chandler Economic Development Division 175 S. Arizona Ave., 5th Floor Chandler, AZ 85225 Phone: 480.782.3030 Email: economicdevelopment@chandleraz.gov Web: www.chandleraz.gov/ed Chandler Chamber of Commerce 101 W. Commonwealth Ave. Chandler, AZ 85225 Phone: 480.963.4571 Toll Free: 800.963.4571 Web: www.chandlerchamber.com Chandler Public Library Chinese Chamber of Commerce of Arizona PO Box 32865 Phoenix, AZ 85064 Web: www.cccofaz.org Basha Library 5990 S. Val Vista Dr. Phone: 480.782.2850 Downtown Library 22 S. Delaware St. Phone: 480.782.2803 Hamilton Library 3700 S. Arizona Ave. Phone: 480.782.2828 Sunset Library 4930 W. Ray Rd. Phone: 480.782.2842 Greater Phoenix Chamber of Commerce 201 N. Central Ave., Suite 2700 Phoenix, AZ 85004 Phone: 602.495.2195 Web: www.phoenixchamber.com The Black Chamber of Arizona 2390 E. Camelback Rd., Suite 130 Phoenix, AZ 85016 Phone: 602.307.5200 Web: www.blackchamberaz.com Chamber Resources The U.S. Chamber of Commerce Small Business Center Web: www.uschamber.com Arizona Hispanic Chamber of Commerce 1020 E. Missouri Ave. Phoenix, AZ 85014 Phone: 602.279.1800 Web: www.azhcc.com US Women’s Chamber of Commerce 700 12th St., NW, Suite 700 Washington, DC 20005 Toll Free: 888-41-USWCC Web: www.uswcc.org Asian Chamber of Commerce 7217 N. 6th Way Phoenix, AZ 85020 Phone: 602.529.8475 Web: www.azasianchamber.com Small Business Resources 2025 10 | Resource Contact Information Continued Education Resources Small Business Assistance Arizona State University Tempe Campus 1151 S. Forest Ave. Tempe, AZ 85281 Phone: 855.278.5080 Web: www.campus.asu.edu/tempe Arizona Commerce Authority Small Business Service 100 N. 7th Ave., Suite 400 Phoenix, AZ 85007 Phone: 602.845.1200 Web: www.azcommerce.com ASU Career & Professional Development Services 1151 S. Forest Ave., Room 329 Tempe, AZ 85287 Phone: 480.965.2350 Google Search Terms: ASU Career and Professional Development Services Chandler Endeavor Venture Innovation Incubator E+I@ACIC Coworking Space 249 E. Chicago St. Chandler, AZ 85225 Phone: 480.884.0302 Email: Info.ACIC@ASU.edu Web: entrepreneurship.asu.edu/programs/chandlerendeavor-incubator Chandler-Gilbert Community College - Pecos Campus 2626 E. Pecos Rd. Chandler, AZ 85225 Phone: 480.732.7000 Web: www.cgc.edu Grand Canyon University (GCU) 4100 W. Chandler Blvd., Suite 100 Chandler, AZ 85226 Phone: (866) 483.6578 Web: https://www.gcu.edu University of Arizona (UA) Chandler Near You Network Location 55 N. Arizona Pl. Chandler, AZ 85225 Phone: (520) 626.1702 Web: www.nearyou.arizona.edu/chandler Arizona Small Business Association (ASBA) 11811 N. Tatum Blvd., Suite P-195 Phoenix, AZ 85028 Phone: 602.306.4000 Web: www.asba.com Maricopa Small Business Development Center (SBDC) George Kimble, Business Analyst Main Office: Gateway Community College 108 N. 40th St. Phoenix, AZ 85034 Phone: 480.784.0601 Web: www.maricopa-sbdc.com/our-team/george-kimble/ Contact: George Kimble, Business Analyst Email: george.kimble@domail.maricopa.edu Workforce Resources Arizona @ Work 1001 W. Southern Ave., Suite 101 Mesa, AZ 85210 Phone: 480.792.6924 Web: www.arizonaatwork.com Chandler Career Center Workforce Development Project Manager Phone: 480.782.3041 Website: www.chandlercareercenter.com Email: Chandler.Escalante@chandleraz.gov Small Business Resources 2025 11 | Coworking Business Spaces E+I@ACIC Coworking 249 E. Chicago St. Chandler, AZ 85225 Phone: 602.448.9110 E+I@ACIC Coworking offers free coworking space housed in the ASU Chandler Innovation Center (ACIC) and co-located with the Chandler Endeavor business incubator program. Features include 16 open workstations with monitors, a reservable conference room with AV equipment, two private meeting areas, and movable table clusters. Visit the ACIC website for more information. Executive Suites Chandler 6909 W. Ray Rd., Suite 15 Chandler, AZ 85226 Phone: 602.550.4842 Expansive @ Cooper Crossing 1820 E. Ray Rd. Chandler, AZ 85226 Phone: 480.656.8300 Fuse Flex Space 2700 S. Gilbert Rd., Suite 5 Chandler, AZ 85286 Phone: 480.925.2334 Industrious 25 S. Arizona Pl., 5th Floor Chandler, AZ 85225 Phone: 480.925.2334 Executive Suites Chandler offers fully furnished office suites, collaborative spaces, virtual offices, and conference rooms. Visit executivesuiteschandler.com for more information on services and amenities. Expansive @ Cooper Crossing offers smart suites, private offices, dedicated desks, coworking memberships and conference rooms. Visit expansive.com for more information on services and amenities. Fuse Flex Space offers private offices and divisible warehouse space for businesses with storage, light assembling or distribution needs. Visit fuseflexspace.com for more information on services and amenities. Industrious Chandler offers a flexible workplace in the heart of downtown Chandler. Members have options for coworking, private offices, and on-demand https://www.industriousoffice. com/ rooms, all accompanied by all-inclusive amenities, including 24/7 access, high-speed Wi-Fi, unlimited color printing, and a fully stocked café. Visit industrious.com for more information on services and amenities. MyCityOffice 2250 E. Germann Rd., Suite 12 Chandler, AZ 85286 Phone: 480.945.4546 MyCityOffice offers private offices, podcast studio rental, conference room rental, multiple membership types (full-time, part-time, day pass) Visit mycityoffice.co for more information on services and amenities. Small Business Resources 2025 12 | Coworking Business Spaces Continued Palette Collective 505 S. Chandler Village Dr. Chandler, AZ 85226 Phone: 915.293.6333 and Pallette Collective’s innovative studio coworking concept offers customizable spaces for entrepreneurs in the hair, beauty, food, beverage and retail industries. Visit palettecollective.studio for more information. 2100 S. Gilbert Rd. Ste 22 Chandler, AZ 85286 Phone: 915.293.6333 Regus 3100 W. Ray Rd., Suite 201 Chandler, AZ 85226 Phone: 864.214.9978 The Forum 2301 S. Stearman Dr. Chandler, AZ 85286 Phone: 480.686.0476 Workpliciti 3377 S. Price Rd. Chandler, AZ 85248 Phone: 602.448.9110 Workuity 3133 W. Frye Rd., Suite 100 Chandler, AZ 85225 Phone: 480.745.2515 Regus offers private offices, coworking desks, meeting rooms, and virtual office options. Visit regus.com for more information on services and amenities. The Forum offers private office rentals, conference room rentals, and all-day meeting packages. Visit theforumcomplex.com for more information on services and amenities. Workpliciti offers private offices, dedicated desks, hot desk, and virtual office options. Visit workpliciti.com for more information on services and amenities. Workuity offers private offices, dedicated desks, and hot desk options. Visit workuity.com for more information on services and amenities. Small Business Resources 2025 13 | Starting Your Business Checklist Business Startup Introduction Starting a business can be an overwhelming task, but approaching it in a thoughtful, thorough way can help to make the process less daunting. This guide is a compilation of information designed to provide both information and to lead you to further resources. We encourage you to look at, examine and research many resources to gain as many ideas and perspectives as possible. The Business Resources pages at the end of each section will help you do this. Business Startup Checklist Conduct market research Market research will tell you if there’s an opportunity to turn your idea into a successful business. It’s a way to gather information about potential customers and businesses already operating in your area. Write your business plan Your business plan is the foundation of your business. It’s a roadmap for how to structure, run, and grow your new business. Fund your business Your business plan will help you figure out how much money you’ll need to start your business. Retain an attorney and CPA, if appropriate Choose a business structure Decide whether you wish to operate as a sole proprietorship, partnership or corporation. The legal structure you choose for your business will impact your business registration requirements, how much you pay in taxes, and your personal liability. Check on zoning ordinances Pick your business location Your business location is one of the most important decisions you’ll make. Whether you’re setting up a brick-and-mortar business or launching an online store, the choices you make could affect your taxes, legal requirements, and revenue. Choose your business name It’s not easy to pick the perfect name. You’ll want one that reflects your brand and captures your spirit. You’ll also want to make sure your business name isn’t already being used by someone else. Obtain a Federal Employer Identification Number (EIN), if needed You’ll use your employer identification number (EIN) for important steps to start and grow your business, like opening a bank account and paying taxes. It’s like a social security number for your business. Find a bank that is right for you, and open a business bank account Acquire necessary licenses and/or permits for state, county and/or city Keep your business running smoothly by staying legally compliant. See insurance agent for full range of coverage Obtain bonding and insurance, if necessary Arrange for utilities, telephone and other services Review all labor regulations when hiring employees Protecting your business (including common scams, cybersecurity, keeping customers’ data safe) Choose a record keeping system and method of inventory control Small Business Resources 2025 14 | Business Plan Structure & Name A written guide to starting and running your business is essential. This plan will help with securing loans, assessing growth and charting your next steps. Business Legal Structure Basic Business Plan Elements Cover Sheet Statement of Purpose Table of Contents The Business • Description • Marketing Plan • Competition • Operating Procedures • Personnel • Business Insurance Financial Data • Loan applications • Capital equipment and supply list • Balance sheet • Breakeven analysis • Pro-forma income projections (profits & loss statement) - Three-year summary - Detail by quarters, second & third year • Assumptions upon which projections were based • Pro-forma cash flow Supporting Documents One decision that business owners need to make early in their business planning process is which legal form of business to choose. Before reaching this decision, a thorough understanding of the advantages and disadvantages of each legal structure is important. Business owners will need to consider the legal and tax-related implications of each form of business and determine which best fits their needs. It is recommended that you seek advice from an attorney and/or certified public accountant before making this decision. Business structures available in the State of Arizona include: • • • • • • Sole Proprietorship General Partnership Limited Liability Company (LLC) Limited Partnership (LP) C Corporation S Corporation *See chart on page 16 for a comparison of business legal structures. Sole Proprietorship A sole proprietorship is the simplest and most common form of business organization. It is defined as a business that is owned by one individual. The creation of a business as a sole proprietorship requires no formal Arizona filing. Profits and losses are reported on a separate schedule within your personal tax return. General Partnership A general partnership is an association of two or more persons joined together to carry on trade or business for profit. Each partner may contribute skills, money and/or time, and each shares in the company’s profits and losses. Earnings are reported at the end of the year with personal tax returns. The partnership’s existence is usually formalized through preparation of a written agreement. In general, agreements outline each partner’s share of income, gain, loss, deductions, credits and methods to dissolve the partnership under various situations. It is not required to file your agreement with the state. Limited Liability Company (LLC) • Tax returns of principals for the last three years • Personal financial statement (all banks have these forms) • For franchise businesses, a copy of franchiser contract & all supporting documents provided by the franchiser • Copy of proposed lease or purchase agreement for building space • Copy of licenses & other legal documents • Copy of resumes of all principals • Copies of letters of intent from suppliers, etc. A limited liability company (LLC) is a flexible form of enterprise that blends elements of the partnership and corporate structures. LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of passthrough taxation. Small Business Resources 2025 15 | Structure & Name Continued Owners of an LLC are called members. There is no maximum number of members. LLCs are required to file with the Arizona Corporation Commission. Limited Liability Partnership (LLP) & Limited Liability Limited Partnership (LLLP) Arizona’s limited liability partnership statutes (A.R.S. § 29-1101, et seq.) govern both limited liability partnerships (LLPs) and limited liability limited partnerships (LLLPs) and permit both general partnerships and limited partnerships to elect limited liability for their general partner(s). The owners report company profits and losses on their personal income tax forms. The business itself is not subject to a federal income tax, as is the case for corporations. To ensure that all legal requirements are satisfied, it is a good idea to consult an attorney to organize these types of partnerships. LLPs and LLLPs are required to register with the Arizona Secretary of State. Limited Partnership (LP) The limited partnership (LP) has become an increasingly popular choice for business owners, especially those involved in real estate or other investment ventures. Unlike general partnerships, LPs can limit the liability and the involvement of certain partners. This is useful for attracting investment partners who would like to participate in the profits of the business but not necessarily in its risks or daily operations. The profits and losses in a limited partnership flow through the business to the partners, all of whom are taxed on their personal income tax returns. LPs are required to register with the Arizona Secretary of State. C Corporation A corporation is the most complex type of business organization. It is formed by law as a separate entity, completely distinct from those who own it, and has its own rights and responsibilities. The primary advantage of incorporating lies in the area of liability. A corporation has its own legal identity, completely separate from its owners. The corporation safeguards the business owner’s personal assets, and its protection alone justifies the additional expense and paperwork. In forming a corporation, potential shareholders usually offer money and/or property in exchange for capital stock. The shareholders are the owners of the corporation, and the directors and officers of the corporation may or may not be shareholders. Corporations are required to file with the Arizona Corporation Commission. S Corporation An S corporation, sometimes referred to as a “Subchapter S corporation,” allows you the protection of a corporation with some of the financial flexibility of a partnership and elects not to be subject to federal corporate income tax. The shareholders, however, include their shares of the corporation’s items of income, deduction, loss and credit, or their shares of non-separately computed income or loss, as part of their personal income. To qualify as an S corporation, a corporation must meet the following: • • • • It must be based in the United States It must have only one class of stock It must have no more than 75 shareholders It cannot have any nonresident alien as a shareholder A corporation that meets all of the above criteria can become an S Corporation. Non-Profit Corporation Arizona allows the formation of a non-profit corporation, but if the corporation intends to be tax-exempt, it must apply for that status through the Internal Revenue Service (IRS). There are more than a dozen different types of corporations approved by the Internal Revenue Service as “tax-exempt non-profit.” These organizations are usually developed and operated exclusively for one or more of the following purposes: charitable, religious, educational, scientific, literary, testing for public safety, fostering amateur sports competition (under certain restrictions), or the prevention of cruelty to children or animals. The organization may be a corporation, community chest fund or foundation. A sole proprietorship or partnership may not qualify. Non-profit corporations are required to file with the Arizona Corporation Commission. Choosing a Name & Registering Your Business If you were asked to name the first computer chip business that comes to mind, who would it be? Intel perhaps. What about a tire manufacturer? Probably Goodyear Tire Company. Having name recognition or what is commonly referred to as “Top of Mind Awareness” is essential in today’s world of intense competition and constant advertising. It all begins with selecting the right business name. There are several factors to consider when choosing a name for your business, such as: • • • • Is the name already in use? Name type - descriptive or non-descriptive Ease of use - easy to spell and pronounce Positive connotation - Goodyear for Goodyear Tire Register your business name by visiting the Secretary of State’s website at www.azsos.gov/business/tntm. From there, you can also search for existing names and guidelines. Forms can be downloaded and either mailed in or you can apply in person at the Office of the Secretary of State. Small Business Resources 2025 16 | Business Structure Comparison Chart Business owners have to pick the business structure that best meets their needs. No one choice suits every business. To help you select the form of ownership that is right for you, consult with an accountant and/or attorney. Sole Proprietorship General Partnerships Limited Liability Company (LLC) “C” Corporation “S” Corporation Allows the protection of a corporation with some of the financial flexibility of a partnership and elects not to be subject to federal corporate income tax. Definition A business owned and operated by one person for profit. Two or more people who jointly own and operate a business. Blends the elements of the partnership and corporate structures. Formed by law as a separate entity, completely distinct from those who own it, and has its own rights and responsibilities. Number of owners allowed Only one owner. • At least two; no upper limits. Owners are called partners. • • None Recommended written agreement and trade name registration. File articles of organization with the Arizona Corporation Commission, includes business name. File articles of incorporation with the Arizona Corporation Commission, includes business name. File articles of incorporation with the Arizona Corporation Commission, includes business name. Must file Form 2553 with IRS. Shareholders elect directors who set policy; officers manage day-to-day operations. Same as corporation. Arizona filing requirements • • • None Recommended trade name registration. • • • At least one; no upper limit. Owners are called members. Management Owner has absolute control. In absence of agreement, all partners have equal voice. Governed by the operating agreement. Subject to income tax No, sole proprietor pays all taxes. No, income/loss is passed through to all members. No, income/loss is passed through to all members. • • • Liability The owner of the business can be held personally liable for the debts and obligations of the business. Dissolution Easiest to dissolve. Owner to pay debt, taxes and claims against the business. All partners are personally liable for business debts and liabilities. • • Partners pay debt, taxes and claims against the business. Settle partnership account. Members have limited personal liability for business debts even if they participate in management. • • • File articles of dissolution with the Arizona Corporation Commission. Pay debt, taxes and claims against the LLC. Distribute corporate assets to members. At least one; no upper limit. Shareholders are owners. • • • At least one; upper limit is 75. Shareholders are owners. Yes, shareholders No, income/ loss is also report income passed through to the from distributions shareholders. & bonuses. Officers and directors report salary income. The corporation safeguards the shareholder’s personal assets except personally guaranteed business debt, or personal negligence or fault. • • Same as corporation. Same as corporation. Shareholders must vote to approve dissolution. File articles of dissolution with the Arizona Corporation Commission. Pay debt, taxes and claims against the corporation. Distribute corporate assets to shareholders * Limited Partnership (LP), Limited Liability Partnership (LLP) and Limited Liability Limited Partnership (LLLP) are not included in the chart above. Data Source: Arizona Entrepreneur’s Edge Small Business Resources 2025 17 | Resource Contact Information City of Chandler Resources Chandler Economic Development Division 175 S. Arizona Ave., 5th Floor Chandler, AZ 85225 Phone: 480.782.3030 Email: economicdevelopment@chandleraz.gov Web: www.chandleraz.gov/ed Business Plan & Legal Structure Resources Arizona Commerce Authority Small Business Services Arizona Entrepreneur’s Edge is a publication that shows a detailed step-by-step process to start your business. Google Search Terms: Arizona Entrepreneur’s Edge Phone: 602.845.1200 Web: www.azcommerce.com/programs/small-business-services Arizona Small Business Development Center Free business plan counseling Google Search Terms: azsbdc free business counseling Web: www.azsbdc.net Arizona Small Business Association (ASBA) In addition to being a step-by-step guide to designing a business plan, this resource gives tips on specializing your business and what lenders want to see. Google Search Terms: ASBA business plan Google Search Terms: ASBA choose a structure Phone: 602.745.7200 Web: www.azsbdc.net Service Corps of Retired Executives (SCORE) Business plan templates and free business counseling Google Search Terms: Business Plans and Startup Assistance Resources Web: www.greaterphoenix.score.org Naming & Registering your Business State of Arizona Google Search Terms: azsos Trade Names and Trademarks Phone: 602.542.4285 Web: www.azsos.gov/business/tntm Small Business Resources 2025 18 | Financing Your Business Funding Options Loans Loans, Grants & Investments Commercial Loans Funding Types • Capacity • Collateral • Credit • Character • Conditions This section will cover how to give yourself the best chance possible of obtaining commercial loans, grants and investment, also covering the benefits and challenges of each option. The primary funding most people acquire is personal funding through home equity loans, friends and family, etc. Depending on the type of business you wish to start, this may be enough. For many, these personal resources are not sufficient. In this case, you may follow many avenues to obtain additional funding. Your financial need greatly determines which opportunities are optimal for you and your business. For Machinery & Supply Needs • • • • • Negotiate with suppliers, using a promissory note rather than cash, if possible Lease machinery, if possible Equity bartering is when equity in the company is offered in lieu of payment Licensing is when another company assumes various costs of bringing the product to market in exchange for payment of royalties Partner with companies that are more established until your company is self-sufficient. This will often be a company that sees some direct benefit from your product being in the market For Monetary Needs • • • Traditional loans from commercial banks or lending institutions are a common way to gain capital Grants may be available, especially if you are bringing technology-related products to market Investments may be attained from an angel fund or venture capitalists In all cases, seek whatever help necessary in understanding the terms of these agreements. Lenders, being averse to risk, have developed the following criteria to help them determine a potential client’s level of risk: Capacity, Collateral, Credit, Character and Conditions. Ability of a borrower to repay the loan is shown by historic cash flow (financial statements, etc.) and prospective cash flow (business projections). The security pledged for the repayment of the loan. Shows your historical tendency towards repaying loans and managing borrowed capital. Both you and your company’s credit will be examined. The least tangible, involving impression, perception and reputation. Terms of the loan, meaning interest rate, duration of loan, etc. The lending institution establishes these. Materials Needed When Applying for Loans • • • • • • • • Loan Application Past financial statements (three years) Current financial statements Financial statements for anyone who owns 20 percent or more of the company Two years of personal income verification Management resumes Business debt schedule Loan Proposal • Size of Loan • Owner Equity • How funds will be used • Personal credit record • Description of the purpose of the funds • Payback plan with contingency plan Small Business Resources 2025 Technical & Management Assistance Online Training Low Cost Training Courses Loan Package Assistance Loan Guarantee $0-$1M Loan Range $10K- $5M Loan Range $2K- $35K Loan Range $100-$25K Funding Options Financing/Loan Guarantees 19 | AZ Minority Business Development Center Business Development Finance Corporation CDC Small Business Finance Arizona Small Business Development Centers National Center for American Indian Enterprise Development Neighborhood Economic Development Corporation (NEDCO) Prestamos Service Corps of Retired Executives (SCORE) SBA* * SBA provides loan guarantees through SBA-qualified lenders. SBA Programs The U.S. Small Business Administration is a United States government agency that provides support to entrepreneurs and small businesses. Minority Business Certification Programs 8(a) Program The 8(a) Business Development Program is a business assistance program for small disadvantaged businesses. The 8(a) Program offers a broad scope of assistance to firms that are owned and controlled at least 51% by socially and economically disadvantaged individuals. The 8(a) Program is an essential instrument for helping socially and economically disadvantaged entrepreneurs gain access to the economic mainstream of American society. The program helps thousands of aspiring entrepreneurs to gain a foothold in government contracting. Participation in the program is divided into two phases over nine years: a four-year developmental stage and a five-year transition stage. Small Disadvantaged Business (“SDB”) Certification Program This program pertains to benefits in Federal procurement. SDBs are eligible for price evaluation adjustments of up to 10 percent when bidding on federal contracts. SDBs must be at least 51 percent owned by a socially and economically disadvantaged person(s). An individual’s net worth cannot exceed $750,000, excluding ownership interest in the applicant firm and equity interest in a personal residence. Small Business Resources 2025 20 | SBA Programs Continued Loan Programs SBA’s Microloan Program SBA extends funding to nonprofit intermediaries who make loans from $100 to $50,000 to small businesses. Technical assistance also is available to small businesses from the intermediaries. SBA 504 Loan Program This program is for growing businesses to finance major fixed assets such as new equipment or real estate — including existing buildings and/or new construction. A typical 504 project requires only 10 percent down from the borrower. 7(a) Guarantee Loan Program The 7(a) loan program is SBA’s primary program for providing financial assistance to small businesses. There are several different types of 7(a) loans, including those listed below. For most 7(a) loan programs, SBA guarantees up to 85 percent of loans of $150,000 or less, and up to 75 percent of loans above $150,000. Interest rates for 7(a) loans are negotiated between the borrower and the lender, but are subject to SBA maximums, which are pegged to the prime rate or an optional peg rate. Types of 7(a) Loan: • • • • • • • Standard 7(a) Loan (up to $5 million): The most popular type and used for a wide range of business purposes. 7(a) Small Loan (up to $350,000): Designed for businesses with smaller financing needs. SBA Express Loan (up to $500,000): For businesses needing quick access to funds. Export Express (up to $500,000): Streamlined option for exporters with high guarantee to mitigate international credit risk. Export Working Capital Program (up to $5 million): Supports businesses engaged in export sales by providing working capital. International Trade Loan (up to $5 million): For businesses looking to expand their export activities or improve their ability to compete internationally. Veterans Advantage: Offers reduced fees for businesses that are majority-owned by veterans, active-duty service members, or their spouses/widows. Regional Grants & Credits Technology Grants Though grants are rare, many of the grants available are offered to technology companies. These are offered for companies in the research and development stage and when preparing to go to market. Both the state of Arizona and the federal government offer these grants. State Technology Grants Market Assessment Grant Small companies receive help determining the market potential of a technology product under development. Technology Assessment Grant Small technology companies receive assistance getting their product validated and reviewed. Research & Development Tax Credit Individual income tax credit for qualified research conducted in the tax year. Other Grants & Credits Angel Investment Companies can get certified with the State for the Angel Investment Program as a Qualified Small Business. This means that capital investors can receive significant tax incentives for investments in these companies. Small Business Resources 2025 21 | Financial Resources Loan Help & Financing Prestamos A Division of Chicanos Por La Causa, Inc. 1122 E. Buckeye Rd. Suite B-4 Phoenix, AZ 85034 ADVISING LOAN GUARANTEES FINANCING LOAN PACKAGING Phone: 602.257.0700 Web: www.cplc.org/econ/lending.php Arizona Minority Business Development Center 255 E. Osborn Rd., Suite 202 Phoenix, AZ 85012 ADVISING LOAN PACKAGING Phone: 602.248.0007 Toll Free:1.800.428.7299 Web: www.phoenixmbdacenter.com Service Corps of Retired Executives (SCORE) 2828 N. Central Ave., Suite 800 Phoenix, AZ 85204 ADVISING TRAINING Phone: 602.745.7250 Web: www.greaterphoenix.score.org Arizona Small Business Development Center 2411 W. 14th St. Tempe, AZ 85248 ADVISING LOAN PACKAGING TRAINING Phone: 480.731.8721 Web: www.azsbdc.net Business Development Finance Corporation 1702 E. Highland Ave., Suite 202 Phoenix, AZ 85016 GUARANTEE FINANCING LOAN PACKAGING Phone: 602.381.6292 Toll Free: 1.800.264.3377 Web: www.bdfc.com CDC Small Business Finance 221 E. Indianola Ave. Phoenix, AZ 85012 Toll Free: 1.800.611.5170 Toll Free: 1.800.817.3795 Web: www.cdcloans.com Local First Arizona 407 E. Roosevelt St. Phoenix, AZ 85004 Phone: 602.956.0909 Web: www.localfirstaz.com LOAN PACKAGING ADVISING GUARANTEE FINANCING FINANCING TRAINING Small Business Administration (SBA) 2828 N. Central Ave. Suite 800 Phoenix, AZ 85004 TRAINING LOAN GUARANTEES Phone: 602.745.7200 Web: www.sba.gov/az The National Center for American Indian Enterprise Development National Headquarters 953 E. Juanita Ave. ADVISING Mesa, AZ 85204 Phone: 480.545.1298 Web: www.ncaied.org The Neighborhood Economic Development Corporation (NEDCO) 868 E. University Dr. Mesa, AZ 85203 ADVISING FINANCING LOAN PACKAGING Phone: 480.969.4024 Web: www.turnanewleaf.org/services/nedco.html Service Key ADVISING FINANCING LOAN GUARANTEES LOAN PACKAGING TRAINING Small Business Resources 2025 22 | Establishing Your Location Location Type You have probably heard before that the three most important factors in starting your business are Location, Location, and Location. The City of Chandler’s Economic Development Division is ready to help you with making that most important decision. Some factors to consider when selecting a site for your business are: • • • • • • • • • • • • • Do you plan to buy or lease? Type and history of the site Parking Condition of the building Total cost and terms of the lease Home-based business? Existing space? Build your own building? Is there room to expand? Proximity to client base Traffic counts/traffic patterns Demographics Nearby services (restaurant, retailers, employee services, etc.) It may be in your best interest to retain a qualified broker to guide you through the site selection and lease/sale negotiation process. Normally, the broker will represent you while the owner of the property you select pays their fee. Economic Development staff can assist you through this process. What type of space fits your needs? You need to know what type of zoning your business fits within before selecting a space. In general, there are three types of zoning for businesses: Commercial, Office and Industrial. Within those general categories, the City of Chandler Zoning Code is very specific about what type of use is compatible in that area. Further, if you would like to start a business out of your home, there are some restrictions, mostly having to do with public safety and nuisance. For example, you would not be allowed to pave your front yard and use it as a parking lot because it disrupts the residential nature of the area. Every zoning decision has reasons behind it and it is always important to speak with Economic Development or Planning staff before choosing a building with zoning that does not fit your use. See the chart below for an overview of location types and what those choices might mean for you. Home-based Business Existing Building New Building File an application for clearance • • • • If current zoning is compatible, you can move forward If zoning could fit with a “use permit,” contact Economic Development staff for guidance If rezoning is required, contact Economic Development staff for guidance • If current zoning is compatible, you can move forward If zoning could fit with a “use permit,” contact Economic Development staff for guidance The Business Location Team Spearheaded by the Economic Development Division, the city’s Business Location Team (BLT) is a free resource to help businesses make smart location decisions. The BLT is a group of knowledgeable city staff from the Development Services, Economic Development, Fire and Planning divisions that guide entrepreneurs through the planning, permitting and licensing process. We assist entrepreneurs with converting a residence to a business, starting a business in your home, leasing or remodeling a commercial space and/or buying a building and converting it for your use. For assistance, contact: Chandler Economic Development Division 175 S. Arizona Ave., 5th Floor Chandler, AZ 85225 Phone: 480.782.3030 Email: economicdevelopment@chandleraz.gov Web: www.chandleraz.gov/ed Small Business Resources 2025 23 | Zoning & Use Permits Home-Based Business To begin a home-based business, you must first determine that the business you are planning will be allowed in residential areas. This will prevent issues, and possibly fines, down the road. To do this, you must read and fill out an application for clearance with the city. As part of the application, you will have to verify that you will not change the residential character of the neighborhood. Go to www.chandleraz.gov/ed and choose Business Services then Small Business Resources for a PDF link to the application. Use Permits A Use Permit requires City Council approval and allows a use that is otherwise not permitted within a specific zoning area. It is important to realize that a Use Permit process can take as long as six months to be approved. If this is not feasible given your timeline, you will need to find an alternative location. To see if your use is one allowed by a Use Permit, you can call the city’s Development Services Department or look at the zoning code at www.municode.com. See Chapter 35, Section 2100 of the City Code (35-2100) for the Use Table. Zoning Changes A zoning change is a change to the city’s zoning code in order to modify the uses permitted at a given site. If a building or site seems like a good fit for your business, but your use is not included as an approved use through its zoning or a use permit, the first step is to speak with Economic Development and Planning staff to determine if staff is supportive of such a change. If staff is supportive, the change is more likely to be approved, but it is ultimately decided by the City Council. The process will likely take between four to six months. Development Process Building your own Building If you are building your own building in Chandler, you will typically go through a complete development process. The city’s dedicated staff will help make this process smooth, predictable and accessible. Each project is assigned a Private Construction Project Manager to oversee the process. They are the single point of contact for you and will keep you up to date on where your project is in the process. ED staff will also be available to help in any way possible as you move forward. The following is a brief outline of the steps necessary to construct a building in Chandler. *Please note that this chart is meant as a general illustration of what one might expect. Please consult city staff for an official explanation of your specific process. Chandler’s Development Process 1 Current Planning • Rezone ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Pre-application Pre-site Tech Review Rezoning Application Case Planner Assigned Neighborhood Meeting Public Notification Staff Report Prepared City Council Hearing 2 Development Review • Civil Engineering ▪ Transportation & Water • Building Review • Site Development Review • Address 3 Permitting 4 Construction Inspection • Civil Engineering ▪ Process/approve Plans • Building Permits ▪ ▪ ▪ Process Plans Access Fees Contractor Information • Building • Site Development Review • Public Works • Preliminary Development Plan ▪ ▪ ▪ ▪ Site Layout Building Design Landscaping Signage Small Business Resources 2025 24 | Additional Location Items to Note Certificate of Occupancy A Certificate of Occupancy (C of O) is given to a company when appropriate inspections have been completed to determine that the building meets code and that the current zoning matches the use of the business going into that location. Before opening a business, every business is required to pass inspection and obtain a Certificate of Occupancy. Public Safety: Fire & Police Chandler Fire, Health and Medical and Chandler Police Department are responsible for ensuring compliance with local fire and police codes. Compliance with fire code is achieved through review of construction and development plans to ensure the site is accessible to fire trucks, has sufficient fire hydrant capacity, proper chemical storage and that employees are safe in the building. Department website: www.chandleraz.gov/residents/fire. Chandler Fire, Health and Medical also performs ongoing inspections of existing space to ensure safety and compliance, including on-site hazardous materials storage (quantity and type). The inspections also include reviews of identified escape routes and potential employee safety hazards. The Chandler Police Department verifies addressing and building layout to guarantee access to the building in a timely manner in the event of an emergency. In addition, all businesses with alarms must have an alarm permit, which can be obtained from the Chandler Police Department. Permits and all information on fees and schedules can be obtained at the Chandler Police Department website: www.chandlerpd.com. Utilities The Permit Counter staff is the main contact for all types of utility improvements, including temporary power service required during construction. Staff coordinates new utility installation orders and utility service relocations. Location Resources Zoning & Development Review Information Chandler Economic Development Division 175 S. Arizona Ave., 5th floor Chandler, AZ 85225 Phone: 480.782.3030 Email: economicdevelopment@chandleraz.gov Web: www.chandleraz.gov/ed City of Chandler - Planning Division Office Location: 215 E. Buffalo St. Chandler, AZ 85225 Phone: 480.782.3051 Web: www.chandleraz.gov/planning Permitting Information City of Chandler - Permit Counter 215 E. Buffalo St. Chandler, AZ 85225 Phone: 480.782.3000 Small Business Resources 2025 25 | Location Resources Inspections Electric City of Chandler - Building Inspections 215 E. Buffalo St. Chandler, AZ 85225 Phone: 480.782.3101 Arizona Public Service (APS) (Downtown area only) Phone: 602.371.6767 Toll Free: 800.253.9407 Web: www.aps.com Fire & Police City of Chandler - Fire Department 221 E. Boston St. Chandler, AZ 85225 Phone: 480.782.2121 Web: www.chandleraz.gov/residents/fire Salt River Project (SRP) Phone: 602.236.8833 Toll Free: 800.258.4SRP (4777) Web: www.srpnet.com Natural Gas City of Chandler - Police Department 250 E. Chicago St. Chandler, AZ 85225 Phone: 480.782.4520 Web: www.chandlerpd.com Southwest Gas Corporation Phone: 602.395.4082 Industrial Phone: 602.861.1999 Commercial Toll Free: 877.860.6020 Web: www.swgas.com Utilities Telecommunications (Internet & Phones) City of Chandler Water & Wastewater 975 E. Armstrong Way, Building L Chandler, AZ 85286 Phone: 480.782.3700 (Water) Phone: 480-782.3600 (Waste) Web: www.chandleraz.gov/residents/water Centurylink Toll Free: 800.603.6000 Web: www.centurylink.com/small-business City of Chandler Trash & Recycling 955 E. Queen Creek Rd. Chandler, AZ 85286 Phone: 480.782.3510 Web: www.chandleraz.gov/residents/recycling-and-trash Cox Communications Phone: 623.322.2000 Toll Free: 866.456.9944 Web: www.cox.com Small Business Resources 2025 26 | Doing Business in Chandler Tax & Licensing Chandler Tax & Licensing Services City of Chandler special regulatory licenses are required for a number of business types. Please refer to the City of Chandler’s Tax & Licensing Division for more information. Fingerprints, photographs and background checks may be required. Chandler Business Registration Every business that operates from a commercial location in the City of Chandler is required to be registered with the city and obtain applicable state and federal licenses. Any business proposed to be located within the city limits — except real property rentals — must have obtained location approval from Development Services. Commercial locations are required to have a Certificate of Occupancy. Home-based locations are required to have Zoning Clearance. Visit www.business.chandleraz.gov. Liquor License The Arizona Department of Liquor Licenses and Control regulates liquor licenses. Applications filed with the state are forwarded to the city for approval. City processing fees include a non-refundable $200 application fee, a $200 issuance fee, and annual license fees ranging from $300 to $1,000, depending on the type of license. The process for approval includes posting a notice at the proposed business location for a period of 20 days and zoning approval. The application is then presented to the City Council for consideration. A Liquor Use Permit through the Planning Division may be required, which can take up to 60 days. Therefore, applying for a Use Permit before applying for a Liquor License is recommended. The City of Chandler has 60 days after the filing date with the Department of Liquor to recommend approval or denial of the application. The State Liquor Board receives the city’s decision and either approves or denies the application. Transaction Privilege (Sales) Tax The City of Chandler imposes a general tax rate of 1.5%, Restaurant and Bars 1.8%, Utility and Telecommunications 2.75%, and Transient Lodging 2.9%. This tax is more commonly known as the sales tax paid by customers when purchasing products and services. Businesses are required to collect this tax and remit the proceeds to the Arizona Department of Revenue. The tax rate Chandler collects is currently one of the lowest in the Phoenix Metro area. The following business activities are subject to privilege (sales) tax: • • • • • • • • • • • • • • • Advertising Amusements Construction contracting Job printing Mining Timbering and other extraction Publishing and other periodical distribution Rental, leasing and licensing for use of real property Rental or leasing to transients Rentals Leasing and licensing for use of tangible personal property Restaurants and bars Retail sales Telecommunication services Transporting for hire and utility services Tax returns are generally due monthly on the 20th of the month following a reporting period. Quarterly or annual reporting options may be allowed based on the provisions in the tax code. All requests for a change of reporting frequency must be submitted in writing to the Department of Revenue. Use Tax Use tax is a tax on purchases or rentals for storage or use within the city, on which an equivalent excise tax has not been paid. The tax is not on inventory held for resale, but if goods were purchased for resale and later removed from inventory for use by that business, use tax would apply. If goods are purchased in a city where the local tax rate is the same or higher than 1.5 percent, then no use tax is due. Transient Occupancy Tax Additional tax on transient lodging. Hotels and similar businesses who offer lodging for less than 30 consecutive days must collect the 1.5 percent real property rental tax in addition to the transient lodging tax of 2.9 percent, including vacation rentals. Therefore, the total tax on transient lodging equals 4.4 percent. Small Business Resources 2025 27 | Tax & Licensing Continued Restaurant & Bar Tax The tax rate for restaurants and bars is 1.8 percent. The tax is applicable to preparing and serving food or beverages for on or offpremises consumption, including cover charges. Caterers are taxed according to their registered business location, not the catering site. Delivery, set-up and clean-up fees separately charged and maintained are exempt from catering income. Sales to nonprofit hospitals and public school cafeterias are exempt. Telecommunication Services Tax The tax rate is 2.75 percent and is charged on subscriptions or access fees for one-way or two-way voice, sound, or video transmissions, facsimile transmissions, relay or repeater service, computer interface over a communications channel, computer time-sharing, and security or alarm system monitoring. Telecommunications for resale and interstate transmissions are exempt. Utility Services Tax The tax rate is 2.75 percent and is charged to city rate-payers on water, electricity and natural gas. Excluded are resales and sales to nonprofit hospitals. NOTE: This information is meant to be a guideline only. For complete details, refer to the City of Chandler Tax Code and related regulations. In case of inconsistency or omission in this publication, the language of the tax code will prevail. For more information, contact the City of Chandler Tax & Licensing Division at 480.782.2280. State of Arizona Tax & Licensing Services The Phoenix Metropolitan area is consistently ranked/rated as one of the top places in the country to start and grow a business. The State of Arizona encourages the development of successful businesses by maintaining a favorable tax system. The state agency that administers the tax system is the Arizona Department of Revenue. In order to make the determination of which State taxes your business will be required to pay as easy as possible, the State has developed a single form application. This application is called the Arizona Joint Tax Application and it is published by the Department of Revenue. After completing this application, the Arizona Departments of Revenue and Economic Security will determines which taxes and licenses apply to your business type and legal structure. This application covers the following license and registration requirements: • • • • • • • • Transaction Privilege (Sales) Tax Use Tax Withholding and Unemployment Taxes Wholesale Tobacco Dealer’s License Liquor Wholesalers, Microbreweries, Farm Wineries and Cider Products Corporate Income Tax Property Taxes Unemployment Insurance * These taxes and licenses are described in detail at www.azcommerce.com/smallbiz, hosted by the AZ Department of Commerce. Federal Taxes - Internal Revenue Service The Internal Revenue Service (IRS) provides assistance to business owners with questions regarding tax rules and regulations. Small Business Resources 2025 28 | Environmental Arizona Department of Environmental Quality The Compliance Assistance Program is designed to help small businesses comply with the environmental regulations that govern the State of Arizona. This special program coordinates many facets of environmental compliance and is separate from the inspection and enforcement divisions. Chandler Fire Department The Chandler Fire, Health and Medical Department helps ensure the compliance of businesses and the safety of their employees by conducting routine fire inspections of commercial businesses, reviewing building improvements, and reviewing construction plans of new or existing facilities. The Hazardous Materials Team is responsible for the hazardous materials program and inspections. Chandler Municipal Utilities Department - Environmental Resources City of Chandler staff are available to offer guidance and compliance support to businesses locating in Chandler. Education programs are also available through this department. Environmental Issues An environmental assessment of the property may need to be completed prior to commencing the project, whether constructing a new building or occupying an existing facility. Development Services staff will be able to assist you to ensure that the correct assessments are completed. Maricopa County Air Quality The Maricopa County Environmental Services Department directs this program and assists small businesses that are or will be subject to the requirements of the 1990 Federal Clean Air Act Amendment. This free program uses education and technical assistance to help small businesses comply with environmental regulations while promoting health, safety and environmental benefits. In addition, the program assists small businesses through the environmental permit process, pollution prevention strategies and solutions, and site evaluations. Maricopa County Environmental Health Division Any establishment that serves food or drinks is required to obtain an Eating and Drinking Permit from the Environmental Health Division. The establishment also must be in compliance with Maricopa County Environmental Health Division requirements for food service facilities and food handlers. Maricopa County Environmental Services Department The Environmental Services Department is responsible for the health and safety of the community by preventing and removing environmental risks. The Department’s Environmental Health Specialists help to improve air quality, ensure that food in eating establishments is free of contamination and ensure that water supplies throughout the County are safe to drink. US Environmental Protection Agency This agency has the primary responsibility for setting and enforcing national standards under a variety of environmental laws, in consultation with state, tribal, and local governments. It delegates some permitting, monitoring, and enforcement responsibility to U.S. states and Native American tribes. EPA enforcement powers include fines, sanctions and other measures. The agency also works with industries and all levels of government in a wide variety of voluntary pollution prevention programs and energy conservation efforts. Small Business Resources 2025 29 | Further Resources Additional Services Environmental Information Continued Arizona Department of Liquor Licenses & Control 800 W. Washington St., 5th Floor Phoenix, AZ 85007 Phone: 602.542.5141 Web: www.azliquor.gov Environmental Protection Agency US EPA - Region 9 75 Hawthorne St. San Francisco, CA 94105 Phone: 415.947.8000 Toll Free: 866.372.9378 Web: www.epa.gov/region09 Arizona Department of Revenue 1600 W. Monroe St., Phoenix, AZ 85007 Various Phone Numbers: Corporate Income Taxes: 602.225.3381 New Businesses & Licensing: 602.255.2060 Problems & Resolutions: 602.716.6025 To Order Forms: 602.542.4260 Web: www.azdor.gov Internal Revenue Service Taxpayer Education & Communication 1818 E. Southern Ave. Mesa, AZ 85204 Phone: 480.503.7355 Web: www.irs.gov/businesses/small Tax & Licensing Information Chandler Tax & License Division 175 S. Arizona Ave. Chandler, AZ 85225 Phone: 480.782.2280 Web: www.chandleraz.gov/tax Environmental Information Arizona Department of Environmental Quality Phoenix Main Office 1110 W. Washington St. Phoenix, AZ 85007 Phone: 602.771.2300 Toll Free: 800.234.5677 Web: www.azdeq.gov City of Chandler - Fire Department 151 E. Boston St. Chandler, AZ 85225 Phone: 480.782.2120 Web: www.chandleraz.gov/residents/fire Maricopa County Air Quality Department 1001 N. Central Ave., Suite 125 Phoenix, AZ 85004 Google Search Terms: Maricopa air quality Phone: 602.506.6010 Maricopa County Environmental Health Division 1001 N. Central Ave., Suite 300 Phoenix, AZ 85004 Phone: 602.506.6970 Web: www.maricopa.gov/3849/Public-Health Maricopa County Environmental Services Department 1001 N. Central Ave., Suite 200 Phoenix, AZ 85004 Phone: 602.506.6616 Web: www.maricopa.gov/envsvc Trade Information Better Business Bureau of Central/Northern Arizona 1010 E. Missouri Ave. Phoenix, AZ 85014 Phone: 602.264.1721 Toll Free: 877.291.6222 Web: www.bbb.org/local-bbb/bbb-serving-the-pacific-southwest Export-Import Bank of the United States (EXIM) For information on EXIM products or ExporTech, contact: Michael Winer Economic Development Project Manager Phone: 480.782.3034 Chandler Municipal Utilities Department 975 E. Armstrong Way, Building L Chandler, AZ 85286 Phone: 480.782.3800 Web: www.chandleraz.gov/residents/utility-services Small Business Resources 2025 30 | Labor Laws Overview The Arizona Labor Department is responsible for administering the State’s laws relating to labor. These statutes include the payment of wages, employment practices, child labor and the licensing of some agencies. Posting Requirements Companies must comply with Federal and Arizona laws requiring that mandatory notices be posted in a conspicuous place that is frequented by employees and/or applicants. Copies of these posting notices can be obtained for a fee from the Arizona Employers’ Advisory Council. Notices are also available on their website azeac.com. The following is a list of some of the posting requirements: Federal Notices • • • • • • • • • • • • • • Department of Labor Age Discrimination in Employment Act Americans with Disabilities Act Civil Rights Act of 1964 (Title VII) Employee Polygraph Protection Act Equal Pay Act of 1963 Equal Opportunity Employment Fair Labor Standards Act Family and Medical Leave Act of 1993 Uniformed Services Employment & Reemployment Rights Act Federal Minimum Wage Government Contractors Federally Financed Construction Migrant and Seasonal Agricultural Protection OSHA - Occupational Safety & Health Administration • • • OSHA – Federal OSHA Summary (Form 200) Occupational Notice Arizona Notices • • • • • • Equal Opportunity Employment Commission Arizona Minimum Wage Constructive Discharge Employment Discrimination Unemployment Insurance Workers Compensation ADOSH - Arizona Occupational Safety & Health Administration • • • ADOSH – State Workplace Exposure to Bodily Fluids Hazmat (hazardous materials) * *See Further Resources for contact information Fair Labor Standards Act The Wage and Hour Division of the U.S. Department of Labor administers the Fair Labor Standards Act (FLSA). The law establishes minimum wage, overtime, and child labor standards for employers. The Arizona Labor Department has jurisdiction over all businesses in the state that the FLSA does not cover. To determine if your business is subject to the FLSA, please contact the U.S. Department of Labor. Wage Payment Laws Every employer in the state must have at least two regular paydays each month, not more than 16 days apart. Arizona law permits five working days between the end of a pay period and the payment of wages earned during that pay period. An employee who is discharged must receive all wages due within three working days. If an employee quits, the employee must be paid all wages no later than the regular payday. Minimum Wage In Arizona, the minimum wage as of January 1, 2025, is $14.70. Legislation Right to Work Legislation Arizona is a right-to-work state, which means no person shall be required to join a labor union as a condition of obtaining or retaining employment. Safety Regulations The Industrial Commission of Arizona, under the Occupational Safety and Health Act of 1970, is the state agency charged with regulating industrial facilities for fire, health and safety requirements. Discrimination in Employment Title VII of the Civil Rights Act of 1964 is the federal law that prohibits employment discrimination based on race, color, religion, sex, or national origin. Small Business Resources 2025 31 | Overview Continued Labor Resources Immigration & Nationality Act Labor Information The Immigration and Nationality Act (INA) prohibits employers from knowingly hiring undocumented workers. It also requires employers to verify their employee’s identity and work eligibility specified on the I-9 form. Arizona Workers’ Compensation Insurance Public and private employers must carry workers’ compensation insurance if they employ “regularly employed workers.” Regularly employed includes all employment, whether continuous throughout the year or for only a portion of the year. The purpose of workers’ compensation insurance is to provide medical benefits and/or compensation to a covered employee who is injured by an accident arising out of and in the course of their employment. The insurance must be covered at the employer’s expense. Companies may choose to insure their employees in one of three ways: 1. 2. 3. State Compensation Fund* Insuring with an authorized carrier Qualifying as a self-insurer under the rules and regulations of the Arizona Industrial Commission* Defining Employee/Independent Contractor Status An employer is responsible for withholding and remitting state and federal income taxes, Social Security and Medicare taxes, paying unemployment and workers’ compensation insurance and the employer’s matching Social Security and Medicare tax. In the case of an independent contractor, a company does not withhold or pay the above items from payments for work performed. According to the IRS, “The general rule is that an individual is an independent contractor if you, the employer, have the right to control or direct only the result of the work and not the means and methods of accomplishing the result.” For additional assistance, please contact the Internal Revenue Service, the Arizona Department of Economic Security, an attorney, or an accountant. Please contact the Employers Council, Inc. *See Labor Resources for contact information Arizona Industrial Commission Division of Arizona Occupational Safety & Health (ADOSH) 800 W. Washington St. Phoenix, AZ 85007 Phone: 602.542.4661 Web: www.azica.gov Arizona Industrial Commission - Special Fund 800 W. Washington St. Phoenix, AZ 85007 Phone: 602.542.3294 Web: www.azica.gov/divisions/special-fund-division Arizona Labor Department 800 W. Washington St. Phoenix, AZ 85007 Phone: 602.542.4515 Web: www.azica.gov/divisions/labor-department Copper Point Mutual Insurance Company (Worker’s Compensation) 3030 N. 3rd St. Phoenix, AZ 85012 Phone: 602.631.2600 Toll Free: 866.284.2694 Web: www.copperpoint.com Employers Council, Inc. 7975 N. Hayden Rd., Suite D-280 Scottsdale, AZ 85258 Phone: 602.955.7558 Website: www.employerscouncil.org Office of Special Counsel For Immigration Related Unfair Employment Practices 950 Pennsylvania Ave. NW Washington, DC 20530 Toll Free: 800.255.8155 Web: www.justice.gov U.S. Department of Labor 230 N. First Ave., Suite 402 Phoenix, AZ 85003 Toll Free: 866.487.2365 Web: www.dol.gov US Equal Employment Opportunity Commission 3300 N. Central Ave., Suite 690 Phoenix, AZ 85012 Toll Free: 800.699.4000 Web: www.eeoc.gov/field/phoenix Small Business Resources 2025 32 | Appendix Glossary of Terms Annexation The process of incorporating county islands into the City of Chandler. Breakeven Analysis A projection of expenses and income to determine when a company will no longer run deficits. Capital Investors People or companies who invest money in a company. Case Planner Planning staff member who is assigned to a zoning or development project. Certificate Of Occupancy (CofO) This certifies that the business owner has completed all city processes and can begin business operations in their space. Demographics Information about a community or area such as average age, income or nationality that can be used to choose a location near your target market. Development Policies Tools used to implement the goals and objectives of the General Plan. These policies guide City Council when making rezoning and other development decisions. New developments should consult development policies and follow the guidelines within. Environmental Assessment An assessment of the possible impact—positive or negative— that a proposed project may have on the natural environment. The purpose of the assessment is to ensure that decision makers consider the ensuing environmental impacts to decide whether to proceed with the project. Equity Bartering Part ownership in a company is given in lieu of monetary payment. License Agreement A license agreement defines the terms under which a resource or property such as petroleum, minerals, patents, trademarks, and copyrights can be used by outside parties. Licensing Businesses need to gain the proper registration and permission to operate their business. A license signifies that this has been done. Minimum Wage Lowest possible wage a worker can receive (tips can also count toward this wage). Operating Procedures An organization’s policies for operation and the procedures that is necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental regulations. Payment of Royalties Usage-based payments made by one party (the “licensee”) to another (the “licensor”) for ongoing use of an asset, sometimes an intellectual property (IP) right. Small Business Resources 2025 33 | Glossary of Terms Continued Permitting This is initial permission to build or change something that is followed up with inspections during and after project completion. Preliminary Development Plans A plan that provides a general design concept and layout for a proposed development. Most rezoning requests also require a preliminary development plan to accompany the zoning application. Preliminary development plans and rezoning requests require City Council approval. Pre-technical Site Plan Review A conceptual look at a site plan to address the “big picture” and discover any potential problems. Private Construction Project Manager Private Construction Project Manager is your point of contact for the duration of city development processes. Right To Work State Employment cannot be denied if an employee chooses not to join a union. Setbacks The area that must be kept clear of buildings/structures. For example, most residential properties have a 10’ rear setback. This means that no buildings will be allowed to be built that are located within 10’ of the rear property line. Signage Regulations The size, shape, and height of signs that is allowed at a particular site. All signs require a sign permit through the Development Services Department. Target Market The people or companies for whom your product is designed. Use Permit A permit that allows a land use for a certain period of time, that is otherwise not permitted within a specific zoning district. Use permits require approval by City Council. Variance A deviation from a regulation such as “setback” that are within the Zoning Code. Variances must be approved by the Board of Adjustments and can only be approved if there is some irregular circumstance that applies to the property, such as an irregular lot shape. Workers’ Compensation Insurance Provides compensation medical care for employees who are injured in the course of employment, in exchange for mandatory relinquishment of the employee’s right to sue his or her employer for the tort of negligence. Zoning The division of a city into areas (zones), specifying the land uses (i.e, residential, commercial, industrial, office, etc.) Allowable for the property in these areas and the regulations associated with the development of these properties (i.e., maximum building height, maximum density, etc.). Zoning Code The written, official language describing permitted land uses, can be found at www.municode.com. Zoning Code Amendments/Zoning Change Modifications to the Zoning Code. Small Business Resources 2025 34 | Index Angel Investment 20 Fire Department 25, 28, 29 Arizona Commerce Authority 7, 8, 10, 17 Municipal Utilities Department Environmental Resources 28, 29 Development Services Department 23, 28, 33 Building Inspections 25 Planning Division 24 Permit Counter 24 Police Department 24, 25 Public Library 7, 9 Tax & License Division 26, 27, 29 Trash & Recycling 25 Water & Wastewater 25 Small Business Services 10,17 Arizona @ Work 8, 10 Arizona Department of Environmental Quality 28, 29 Arizona Department of Liquor License & Control 26, 29 Arizona Department of Revenue 26, 29 Arizona Hispanic Chamber of Commerce 9 Arizona Industrial Commission Division of Occupational Safety & Health 31 Arizona Industrial Commission - Special Fund 31 Arizona Minority Business Development Center Chandler Chamber of Commerce 8, 9 19, 21 Chandler Endeavor Venture Innovation Incubator 9, 10 Arizona Occupational Safety & Health Administration (ADOSH) 30, 31 Chandler-Gilbert Community College 8, 10 Arizona Office of Tourism 7 Chinese Chamber of Commerce 9 Arizona Public Service (APS) 25 Arizona Secretary of State 15 Arizona Small Business Association (ASBA) 10, 17 Copper Point Mutual Insurance Company 31 Coworking Business Spaces 11, 12 Corporate Income Tax 27, 29 Arizona Small Business Development Center Corporation 14 17, 19, 21 Corporation, C 14, 16 Asian Chamber of Commerce 9 Corporation, S 15, 16 Cox Communications 23 Education Levels 6 E+I@ACIC Coworking Space 9, 10, 11 Equal Opportunity Employment Commission 34 Grand Canyon University (GCU) 8, 10 Greater Phoenix Chamber of Commerce 9 ASU - Arizona State University ASU 8, 10 Career and Professional Development 8, 10 Services Black Chamber of Arizona 9 Business Development Finance Corporation 19, 21 Business plan 13, 14, 17 CDC Small Business Finance 19, 21 Certificate Of Occupancy 7, 24, 32 City of Chandler Business Location Team (BLT) 7, 22 Diversity Office 7 Economic Development Division 7, 9, 17, 22, 24 Greater Phoenix Economic Council (GPEC) 7 Home-Based Business 22, 23 Income Levels 6 Limited Liability Company 14, 16 Liquor License 26 Environmental Services Department Local First Arizona 28, 29 21 Small Business Resources 2025 35 | Index Continued Maricopa Small Business Development Center (SBDC) 10 Maricopa County United States Department of Labor 30, 31 Environmental Protection Agency 28, 29 Air Quality Department 28, 29 Environmental Health Division 28, 29 Equal Employment Opportunity Commission 31 Environmental Services Department 28, 29 Internal Revenue Service 15, 27, 29 Market Assessment Grant 20 30 Minimum wage 30, 32 Occupational Safety & Health Administration (OSHA) Employers Council, Inc. 31 National Center for American Indian Enterprise Development 19 Neighborhood Economic Development Corporation (NEDCO) 19 Partnership, General Office of Special Counsel for Immigration Related Unfair Employment Practices 31 UA - University of Arizona 8, 10 US Women’s Chamber of Commerce 9 Use permit 22, 23, 26, 33 14, 16 Use Tax 26, 27 Partnership, Limited 15, 16 Utilities 24, 25 Partnership, Limited Liability 15 Utility Services Tax 27 Posting Requirements 30 Wholesale tobacco dealer’s license 27 Prestamos 19, 21 Worker’s Compensation 31 Private Construction Project Manager 23, 33 Working Population by Age 6 Property Tax 27 Race & Ethnicity 6 Research & Development Tax Credit 20 Restaurant & Bar Tax 27 Sales Tax - see transaction privilege tax Salt River Project (SRP) 26 Service Corps of Retired Executives (SCORE) 17, 19, 21 Sole proprietorship 13, 14, 15, 16 Southwest Gas Corporation 25 State Compensation Fund 31 Technology Assessment Grant 20 Telecommunication Services Tax 27 Transaction Privilege (Sales) Tax 26, 27 Transient Occupancy Tax 26 Zoning change 23, 33 Zoning code 7, 22, 23, 33 Small Business Resources 2025 36 | CONTACT US 480-782-3030 CHANDLERAZ.GOV/ED ECONOMICDEVELOPMENT@CHANDLERAZ.GOV Chandler Economic Development Small Business Resources 2025